MIRA INFORM REPORT

Report Date :

19.05.2011

IDENTIFICATION DETAILS

Name :	AAROHI DIAMONDS LTD.

Registered Office :	Room 910, 9/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon

Country :	Hong Kong

Date of Incorporation :	07.11.2003

Com. Reg. No.:	34064068-000

Legal Form :	Private Limited Company

Line of Business :	Importer and Exporter of all kinds of diamonds and jewellery product

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Hong Kong

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

AAROHI DIAMONDS LTD.

company ADDRESS

Room 910, 9/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.

PHONE: 2333 6078, 2333 6272

FAX: 2333 6768

E-MAIL: admin@aarohidiamonds.com.hk

MANAGEMENT

Managing Director: Mr. Devang Hasmukhlal Shah

SUMMARY

Incorporated on: 7th November, 2003.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,000.00

Issued: HK$1,000,000.00

Business Category: Jewellery Trader.

Employees: 10.

Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.

Banking Relation: Satisfactory.

company ADDRESS

Registered Head Office:-

Room 910, 9/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.

Trading as:-

Classic Jewels [BR No. 34064068-001]

Unit 13A, 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

Holding Company:-

Aarav (HK) Ltd., Hong Kong. (Same address)

Affiliated Companies:-

Classic Diamonds Group of Companies

Aarohi Diamonds Inc., USA.

Aarohi Diamonds Israel Ltd., Israel.

Ankur Diamonds N.V., Belgium.

Armaan D & J DMCC, Dubai.

Classic Diamonds (India) Ltd., India.

Diamond Direct LLC, USA.

etc.

BUSINESS REGISTRATION NUMBER

34064068-000

COMPANY FILE NUMBER

0869809

MANAGEMENT

Managing Director: Mr. Devang Hasmukhlal Shah

Contact Person: Ms. Cheung Pui Sze

CAPITAL

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$1,000,000.00

SHAREHOLDERS

(As per registry dated 07-11-2009)

Name		No. of shares
Classic Diamonds (India) Ltd. 1002, Prasad Chambers, Opera House, Mumbai-400 004, India.		490,000
Aarav (HK) Ltd., Hong Kong.		510,000
		––––––––
	Total:	1,000,000 =======

DIRECTORS

(As per registry dated 07-11-2009)

Name

(Nationality)

Address

Devang Hasmukhlal SHAH

78/39, Marine Drive, F RD, 4/F., Mumbai 20, India.

Nirav Kumar BHANSALI

C-42, Ramba, Napenansea Road, Mumbai-400 006, India.

SECRETARY

(As per registry dated 07-11-2009)

Name	Address	Co. No.
Essex Tax & Secretarial Services Ltd.	Room 606, 6/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.	0605716

HISTORY

The subject was incorporated on 7th November, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Unit 13A, 9/F., Heng Ngai Jewelry Centre, 4 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong where is the operating address of Classic Jewels, moved to the present address with effect from 15th June, 2009.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of diamonds and jewellery products.

Employees: 10.

Commodities Imported: India, Europe and other Asian countries.

Markets: India, other Asian countries, Europe, US, etc.

Terms/Sales: As per contracted.

Terms/Buying: L/C, T/T, D/P, etc.

FINANCIAL INFORMATION

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$1,000,000.00

Indebtedness: US$7,500,000.00 (Total amount outstanding on all mortgages and charges as per last

Annual Return dated 07-11-2009)

Mortgage or Charge:-

Date of Debenture: 16-01-2008

Amount: All monies

Property: 1) Assign to the Bank the proceeds of each policy of insurance

2) Charge to the Bank by way of a floating charge all shares, stock, bonds, debentures,

certificates of deposit, promissory notes, warrants, futures, options, funds, units, notes and other securities

3) Charge to the Bank by way of floating charge all book debts and other debts

4) Charge to the Bank by way of floating charge all negotiable instruments at any time drawn, issued or endorsed in favour of, or held by or on behalf of, the Customer in relation to Secured Assets

5) Charge to the Bank by way of floating charge all funds standing to the credit of the Customer

6) Charge to the Bank by way of floating charge all choses in action and claims now and in the future belonging to the Customer

Mortgagee: ICICI Bank Ltd., Hong Kong Branch.

Profit & Loss: Making a small profit every year.

Condition: Keeping in an active state.

Facilities: Making active use of general banking facilities.

Payment: Met obligations on time.

Commercial Morality: Satisfactory.

Bankers:-

· The Royal Bank of Scotland N.V., Hong Kong Branch.

· ICICI Bank Ltd., Hong Kong Branch.

· Indian Overseas Bank, Hong Kong Branch.

· RBS Coutts Bank Ltd., Hong Kong Branch.

Standing: Normal.

GENERAL

Having issued 1 million ordinary shares of HK$1.00 each, Aarohi Diamonds Ltd. was jointly held by two firms: Classic Diamonds (India) Ltd. [Classic Diamonds], an India-based firm holding 49% interests; and Armaan SDW Ltd., a Hong Kong-registered firm holding 51%. The latter is also located at the subject’s operating address. On 5th May, 2008, Armaan SDW Ltd. transferred all its shares to Aarav (HK) Ltd. [Aarav] which is also located at the operating address of the subject. Now, the subject is jointly held by Classic Diamonds, holding 49%; and Aarav, 51%.

The subject moved to the present address with effect from 15th June, 2009.

The subject’s business name is “Classic Jewels” [CJ] which is trading in the products of Classic Diamonds (India) Ltd. [Classic Diamonds], an India‑based firm. Currently, Classic Diamonds is listed on the Bombay Stock Exchange. The subject is a key member of the Classic Diamonds Group. It is also a DTC sightholder company and an Aber sightholder company.

With an annual turnover in excess of US$100 million, Classic Diamonds is one of the leading diamond companies in India. Classic Diamonds converted from a partnership to a corporate structure in 1986. It has been one of the few publicly quoted companies on the stock exchange ever since.

Classic Diamonds is one of the largest Indian manufacturers of “Stars” (2 pointer) with a monthly output of 1,500,000 stones. Classic Diamonds is buying its rough diamonds from the major mining companies, after processing the finished products are sold to jewellery manufacturers or sent to its own jewellery manufacturing factory.

Classic Diamonds’ jewellery manufacturing factory is ISO 9001 certified. It also has got a ‘Green Certification’ from Wal-Mart.

According to Classic Diamonds, its factory in Surat, India is engaged in cutting and polishing raw diamonds. The floor area of the factory is 220,000 sq.ft. and can accommodate 5,000 workers. Currently Classic Diamonds has set up sales offices in Dubai, Antwerp, Israel, New York, etc. In February 2003, Classic Diamonds launched its CJ flagship stores in India. In 2004, the Group set up a Classic Jewels first international store in Hong Kong. In the year, third and fourth store in Chennai and Gurgaon, India were set up respectively in the year.

One of the subject’s director Nirav Kumar Bhansali is also a director of Classic Diamonds.

Besides the subject, Classic Diamonds Group has set up affiliated companies in the United States and Israel. Overall business is active.

For the year ended 31st March, 2010, the sales of the Classic Diamonds Group amounted to Rs 6,558.0 million, decreased by 2.4% as compared with Rs 6,719.1 million in FY 2009; net profit was Rs 174.2 million, grew by 388.0% as compared with Rs 35.7 million in FY 2009. The Group’s sales in FY 09/10 decreased just a little bit but its net profit increased substantially.

The subject also has got an affiliated company Ankur Diamonds N.V. [Ankur Diamonds] which is in Antwerpe, Belgium. Ankur Diamonds is trading in all kinds of diamonds, including industrial diamonds.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign countries such as Israel.

The subject is fully supported by the Classic Diamonds Group.

On the whole, consider the subject good for normal business engagements.

COURT CASES: None per our.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.08
UK Pound	1	Rs.73.45
Euro	1	Rs.64.30

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.